XLRE, XLP Post Weekly Gains; XLU Flat as Tech Falls

The Real Estate Select Sector SPDR (XLRE) led the trio with a 3.4% weekly gain. The Consumer Staples Select Sector SPDR (XLP) rose 2.8% and the Utilities Select Sector SPDR (XLU) added 0.2% for the five-day period. The information technology sector fell 5.8% on Friday, and the Nasdaq-100 declined 4.8% that day.

Last Friday’s sell-off pushed more than half of S&P 500 components lower and left 65 names down at least 5% for the session. Memory-chip maker Micron Technology fell about 13% and a major semiconductor ETF lost roughly 10.4% on the day.

XLRE holds roughly 31 stocks concentrated in real estate investment trusts and property managers and manages about $7.9 billion in assets. Boston Properties and Camden Property Trust each rose about 8.8% for the week, and Public Storage climbed roughly 7.9%; Public Storage represents about 4.6% of the fund.

XLP tracks 36 consumer staples companies and manages about $14.2 billion. Smaller-weighted positions produced some of the largest percentage gains: JM Smucker rose about 11.9% and Clorox gained near 9.9%. Procter & Gamble, a larger holding in the fund at roughly a 7.3% weight, increased about 5.6% during the period.

XLU is the largest of the three funds, with about $22.4 billion in assets and 31 utility stocks spanning electric, gas, water and renewable companies. Its five-day return was 0.2%. Top performers inside the fund included Pinnacle West Capital, which rose about 3.9%, Southern Company, up roughly 2.7%, and Consolidated Edison, up about 2.5%.

A strong May employment report increased expectations for a Federal Reserve interest-rate increase. Utilities are generally sensitive to interest-rate expectations.

All three ETFs charge an expense ratio of 0.08%. REITs are companies that own or manage income-producing real estate, consumer staples firms sell everyday household goods and necessities, and utility companies provide services such as electricity, gas and water.